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September 14, 2012

IMS Core Market Grows Almost 40 Percent Over Last Year, Led by Huawei

By Rory Lidstone, TMCnet Contributing Writer

Exact Ventures, an independent market intelligence and advisory firm, recently released a new report stating that the IP multimedia subsystem (IMS) Core market grew by almost 40 percent in the second quarter of this year over the same period in 2011.

The report added that China-based Huawei led the IMS Core market during this strong period of growth, followed by Nokia (News - Alert) Siemens, Ericsson and Mavenir.

Although wireline deployment was strong in China during this period, it was in fact exceptional voice over LTE (VoLTE) deployments in North America that really drove the market toward this substantial growth in Q2.

Despite the massive growth seen in a year's time, the report states that the total NGN voice and IMS Core market has only shown slight growth quarter over quarter. Indeed, seasonal strength in the wireless voice core market was barely able to offset substantial weakness in the legacy wireline NGN and IMS Core markets this past quarter.

Meanwhile, the service provider session border controller (SP-SBC) market has also been affected by slowed wireline spending, barely breaking even sequentially and year over year.

"The total SBC market continues to be boosted by the enterprise SBC category (E-SBC), which continues to be fueled by strong adoption of hosted unified communications and SIP trunking services" said Greg Collins, founder and principal analyst at Exact Ventures. "The E-SBC market was up nearly 20 percent year-over-year in 2Q12."

Huawei (News - Alert) may be doing well overall in the IMS Core market, but it has been encountering trouble in its efforts to expand internationally. In Australia, the telecommunications equipment manufacturer was recently banned by the Australian government from taking part in building the country's high-speed national broadband network.

Meanwhile, Huawei recently claimed that its expansion in the U.S. has been blocked due to fear that the company has been installing "backdoor technology" in its infrastructure.

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